Simplify and unify your HCM compliance processes. Wages and salaries payable 226 ??? At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and liabilities of$584,000. Are newly hired independent contractors covered under federal laws pertaining to new-hire reporting? Forbids discrimination in hiring. 40. Set up payroll accounts If you haven't already, set up your payroll accounts in your chart of accounts (COA). A) Form W- 65. Plan B costs$0.20 per minute plus $0.10 per text message sent. C) Employee earnings record Protest Unemployment Insurance benefit charges or rates. C) SUTA How does a payroll accountant keep track of employee's year-to-date earnings for wage bases on taxes like FICA, FUTA, and SUTA? Issuanceofcommonstock.6. How are the funds used which are provided by FUTA and SUTA? Feb 15 J 4. A) It may be expressed as assets + liabilities = owners' equity. Does FLSA require the employer to display a poster with the FLSA rules? \text{14. At ADP, we say that were Always Designing for People, starting with our own. * What are the enhancing qualities of the qualitative characteristics? Workers' Commpensation Insurance Expense-Operating expense Why is it important to have columns on the payroll register title "Earnings subject to Federal grass clippings at the curb for pickup because local landfills cannot handle the volume. Most firms are now using a standard reference inquiry form, supplied by the IRS, If an investigative consumer report is being checked, the job applicant must be notified in writing by the employer that such a report is being sought, There are no states that allow employees to access their personnel files, The payroll register is a separate payroll record that is kept on each employee, A payroll register lists all employees who have earned remuneration, the amount of remuneration, the deductions, and the net amount paid for each pay period, The amounts needed for the payroll entries in the journal come from the employee's earnings record, The trend toward outsourcing of payroll operations has weakened in recent years. B) It should make a note to create the reversing entry at the end of the next financial period. 19. ls the payroll register used for journalizing the payroll entries? statement? Which act covers employee pension and welfare plan.? Workers' compensation insurance premiums are paid for by the employees, Workers' compensation insurance premiums vary according to the different degrees of danger in the employees' jobs. C) Employee pay disbursement and voluntary deduction remittance 16. B. ERISA requires each employer to establish a pension plan. Any Boxes left with a question mark will be automatically graded as incorrect.) An employer has computed the following amounts for its employee Mary during a week in January: gross wages $500.00; FICA tax withheld $38.25; federal income tax withholding $67.25; State income tax withholding $20.00; unemployment taxes $24.00; worker compensation insurance $5.00. 401(k) contributions payable 223 454. Raw materials purchases for cash. ADP helps organizations of all types and sizes unlock their potential. What are the main kinds of information contained in a payroll register? Wages and salaries payable 226 117,334. c. More than five have large-screen TVs? a. Walsh-Healey Public Contracts Act C) It should disburse the accrued pay to the employees. It indicates, "Click to perform a search". FUTA Taxes Payable-liability Employers use the employee's earnings record in preparing ___. DEBIT CREDIT DEBIT CREDIT These computations are shown in the Employee Payroll Register. Saleofequipmentforanotereceivable.10. Indirect materials usage. It is a monthly schedule depositor. FICA (Federal Insurance Contributions Act). The lower payroll Does the ADEA quit protecting employees after the age of 70? 66. Under the FLSA, what information concerning employees' wages earned must be maintained by the employer? To rule the payroll register means that the payroll accountant establishes procedures about the payroll register. Does FLSA require all employees to be paid weekly, biweekly', monthly? entry? Marital status & number of withholding allowances 6. C) Garnishment It exists in many forms, from manual booklets and ad-hoc registers created in Excel to reports produced by dedicated payroll software. C. Restrictions the employment of child labor. How does a payroll accountant keep track of employee's year-to-date earnings for wage bases C) A debit balance will decrease the expenses of the firm's income statement. C) Employee signature Does every state have both federal and state unemployment laws? 33. Payroll Test #1 Flashcards | Quizlet Subjects Expert solutions Log in Sign up Payroll Test #1 Term 1 / 66 Does every state have state unemployment laws? To ensure compliance, employers must be familiar with the requirements applicable to their workforce and retain the appropriate documentation for the length of time specified by federal, state and local governments. This will increase the Executive employees who are 65 years or older and have high policymaking positions during the two-year period prior to retirement. A) Debit $1, The payroll register is a separate payroll record that is kept on each employee. What is your sisters total cost under each of the two plans? D. FMLA D) the employee's name, social security number, and address The entry to record vacations earned in 2022 will affect Vacation Expense on the 2022 income statement and Vacation Payable, a liability on the 2022 balance sheet. Apr 16 J23 16,495 32. automatically graded as incorrect.) b. Free True False Q03 Computing the sum of rows and columns is known by the term Multiple Choice Q04 Where is one place that information from the payroll register would not be transferred? Direct materials usage. True, Payroll accruals reflect the amount of payroll paid but not earned at the end of the financial B) Both documents contain information about the employee's address and job title. I never regret investing in this online self-study website and I highly recommend it to anyone looking for a solid approach in accounting." B) Employee pay remittance and voluntary deduction remittance A) It should create a reminder about the accrual to ensure accuracy of computations on the next A payroll register can also . These entries are then incorporated into an entity's financial statements through the general ledger. The purpose of payroll register is to record of all the payment details for employees during a specific pay period. 7. the total expenses of the firm and decrease the net income of the firm. Report changes to your business. Because of the amount of sensitive information included in the payroll register, access tends to be limited only to those authorized within a company, such as the payroll manager. D) General journal numbers Type the formula, then press Enter. What is the amount of the 401(k) contributions for the pay date? Collection of an account receivable.} The tax payers standard deduction and the personal exemptions ($3,650) allowed for the tax year divided by the number of ay periods in the year. How does a debit balance in the wages and salaries expense account affect a firm's income 5. A) Net pay Type an equals sign (=) to signal the fact that the cell contains a formula. What obligations are imposed upon the employer by the Fair Credit Reporting Act of 1968? Wages Payable-liability Learn how we can make your work easier. U.S. government T-bills account for 45%45 \%45% of the portfolio, large-company stocks constitute another 40%40 \%40%, and small-company stocks make up the remaining 15%15 \%15%. What does the term "billable time" mean as it pertains to payroll accounting? Feb 15 J Single click the box with the question mark to produce a check mark for a correct Loantoanotherfirm. Rate of pay 8. February 7 Journalize the employer . 3. Assume that the company uses the accrual method of accounting. Cross), Give Me Liberty! PAYROLL REGISTER FOR PERIOD ENDING January 8, 20 - - REGULAR EARNINGS OVERTIME EARNINGS DEDUCTIONS NET PAY TAXABLE EARNINGS TOTAL FICA GROUP HEALTH CHECK EMPLOYEE AMOUNT AMOUNT EARNINGS OASDI HI FIT SIT SUTA CIT SIMPLE INSURANCEINSURANCE NO. Purchaseofinventory.7. Which of the following laws establishes the minimum wage? Deductions. Which report contains employer share tax expenses for a period? At ADP, security is integral to our products, our business processes and our infrastructure. D. Religion The volume of manual paycheck entries can be reduced by continual attention to the underlying causes of transaction errors, so there are fewer payroll errors to be rectified with a manual paycheck. Dont just take our word for it. Those who have not worked at least one year and at least 1,250 hours in the previous 12 months for the company. Record the regular hours and the overtime hours worked for each employee, using the time clerk's report as your reference. This will increase During the past week, the employee worked 50 hours. The Federal Insurance Contribution Act, the Medicare portion of the tax is only paid by the employer. Purchase of treasury stock.} Correct answer: Option (1) Medicare tax is the correct answer. Who is covered by the Walsh-Healey Public Contract Act? b. Under FMLA, may an employer substitute an employee's earned paid leave for part of the 12-week family leave? the health Insurance is qualified under Section 125? Why does company profitability decrease in direct proportion to the payroll expenses? For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. False, The General Journal contains records of a firm's financial transactions, which appear B. Loan to another firm.} C) It designates where labor is used in a firm. C) It is non-traceable labor that a company must absorb as overhead. What is the current minimum wage under FLSA? incomes are, the higher the profitability will be. In cases where both Federal and State regulations cover the minimum wage for the same employee, the high of the two rates is always used as the standard minimum wage. What is true about the trial balance? This check may be paid through the corporate accounts payable bank account, rather than its payroll account, so you may need to make this entry through the accounts payable system. Social Security tax payable 221 10,517. 59. Yes, Employees FIT Payable . (You may select more than B) It contains a detailed listing of every transaction during a period. HOURS WORKED Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Under the Affordable Care Act, which employers are required to provide insurance coverage for all full-time employees and for their dependents? Calculate regular and overtime pay. B) It must create an adjusting entry to recognize the payroll accrual. A) Employee earnings record 4. They must disclose to the job applicant that they are seeking an investigative report. C) Form W- Quickly connect ADP solutions to popular software, ERPs and other HR systems. 1. Rushing River Boats has the following data in its Social Security tax payable General Ledger How will payroll deductions from employees wages for their portion of 401K plans be recorded? View notices and letters. D) Form 941 D) Payroll register Employers also use it to: While all of these functions can be accomplished manually, dedicated payroll software provides information at the click of a button, making reporting fast and simple. All earnings are taxable. To enter a formula manually, follow these steps: Move the cell pointer to the cell that you want to hold the formula. D) Transcribing ls the written record sent to the Payroll Department telling them that a new employee should be added to the payroll called a hiring notice? Payroll registers include all of the information in a pay period for all employees. Many employers find a payroll register to be an indispensable part of their business because of its ability to help them keep both their payroll records and their budgets in order. D) The transaction appears on page four of the General Journal. From best practices to advice and HR consulting. The primary journal entry for payroll is the summary-level entry that is compiled from the payroll register, and which is recorded in either the payroll journal or the general ledger. To prohibit discrimination on the basis of age in the employment practices of employer. & \text{ } & \text{ }\\ How is information that is usually on a paper stub given to an employee if the employer is using electronic paystubs. You need to have a record of how many hours your employees have worked, their gross salary, tax withholdings, and all other deductions. D) It is non-employee labor that the company must pay. Color We have credited a liability account for each of the tax amounts. 14. Listed below are several transactions. & \text{ } & \text{ }\\ 2. The basic entry (assuming no further breakdown of debits by individual department) is: There may be a number of additional employee deductions to include in this journal entry. We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping. Issuance of common stock.} Single click 8. Are unions and employment agencies covered under the Civil Rights Act of 1964? (You may select more than one answer. Use the following information for Questions 15 - 17: After recording this entry, reverse it at the beginning of the following accounting period, and then record the actual payroll expense (as just described under the "Primary Payroll Journal Entry" section whenever it occurs. Discover what others say about us. & \text{ } & \text{ }\\ Cash 101 117,334. C) As expenses date: Oct 27 Wages and salaries expense 522 $298,384. C. National Origin Sale of land for cash.} C) Debit $ \text{11. 54. Paymentofanaccountpayable. Payroll data for the current week are as follows: hours worked, 46; federal income taxwithheld, $110; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment Records and the General Journal. B. ERISA requires each employer to establish a pension plan. the total expenses of the firm and increase the net income of the firm. This account would be credited for the amount paid. "I am an engineer pursuing an MBA diploma and accounting & financial economics have been a huge challenge for me to overcome. Payroll register and employees' earnings records are important payroll accountant tools Tracking of governmental liabilities Yields the data needed for financial reports Provides information for decision-makers about costs and company profitability Accounting system entries record all payroll-related activity serves as a backup in the event of computer failure. (You may How might globalists and traditionalists view cultures, places, and regions differently. The accrual entry, as shown next, is simpler than the comprehensive payroll entry already shown, because you typically clump all payroll taxes into a single expense account and offsetting liability account. Gross wages of $500.00 + employer's portion of FICA $38.25 ($500.00 X employer rate of 7.65%) + unemployment tax of $24.00 + worker comp insurance of $5.00. We have been recognized by esteemed organizations for the value we bring to our clients, our associates and the global community. B) Payroll register D) 401(k) contributions What is the amount of the Social Security tax payable? A) Debit $1, Health Insurance Premiums Collected-liability It helps employers reconcile their payroll transactions and prepare quarterly and year-end tax reports. To prepare period reports and complete Form W-2 for each employee, Fundamentals of Financial Management, Concise Edition, Operations Management: Sustainability and Supply Chain Management, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. False, Two complete payroll-related General Journal entries are recorded each pay period: one for the posted an additional $4,390 on its October 31 pay date. B) It depicts the ideal distribution of labor in a firm. the total incomes of the firm and decrease the net income of the firm. Which employee payroll classification will likely require an accrual adjusting entry for the gross salaries or wages at the end of a calendar month? For fill-in-the-blank questions, press or click on the blank space provided. Direct labor usage. May criminal background checks be used by all employers for any person? Want more exclusive business insights like this delivered to your inbox?Subscribe now. Transaction1. Paymentofalong-termnotepayable.13. A) Debit R. Sanders Capital, $250,000; Credit Cash, $250, 41. B) Employee earnings record Paymentofanaccountpayable.15. DATE DESCRIPTION POST REF. pay date. Tap into a wealth of knowledge designed to simplify complex tasks and encourage strategic decisions across key functions. Application of overhead to goods in process. Less than five have large-screen TVs? D) Debit Cash, $250,000; Credit R. Sanders Capital, $250,00 0 D) Employee pay recording and employer share payroll taxes recording b. Owners equity as of December 31, 2014, assuming that assets increased by $113,000 and liabilities increased by$44,000 during 2014. C. 40 Chapter 7 quiz - the payroll register, employees' earning record, and accounting system entries. If the expected returns are 3.8%3.8 \%3.8% for the T-bills, 12.3%12.3 \%12.3% for the large-company stocks, and 17.4%17.4 \%17.4% for the small-company stocks, what is the expected return of the portfolio? The holder of any unclaimed property must file a report after a specified sttutory period and then surrender the money to the stte as abandoned property. Read the latest news, stories, insights and tips to help you ignite the power of your people. Were reimagining what it means to work, and doing so in profound ways. Neither The Balance Sheet Nor The Income Statement. If a firm accrues the payroll due but not paid at the end of a financial period, what should it do Its easier to keep accurate payroll records and run reports quickly with payroll software. May 14 Wages and salaries payable 226 117,334. I firmly believe that the well-organized material provided by the PRO account of AccountingCoach has motivated me to excel during the academic year through the MBA program's working assignments and to be much better prepared for my finals. e. None of the above. question mark Will be automatically graded as incorrect.) C) Debit Revenue, $250,000; Credit Cash, $250, Generally, a payroll register lists the following information about each employee: Gross pay Net pay Payroll taxes Employee deductions (e.g., health insurance) What is general priority order concerning wage attachements. D) One side of the equation must equal zero. Which act sets the minimum wage, and what is the current wage rate? How does the payroll register connect with the employees' earnings records? Medicare tax $ 390. B) Equity 221 Using the payroll register, compute the employee gross pay and net pay using 35 hours as the standard workweek for all employees except Mary Shangraw, who works 20 hours per week and receives overtime for any time worked past that point. How do accrued, but not paid, wages appear on the balance sheet? In a recent study, 90 percent of the homes in the United States were found to have largescreen TVs. Net pay $ 19,747. Single click the box with the question This entry may be avoided if the amount is immaterial. Age True Which of the following is true of employee's earnings record? A) Form W- Fast, easy, accurate payroll and tax, so you can save time and money. B) Total overtime earnings answer And double click the box with the question mark to empty the box for a wrong answer. In other words, a payroll register is the document that records all of the details about employees' payroll during a period. See Answer. Exempt salaried employees are often paid for their work right up to payday. See how we help organizations like yours with a wider range of payroll and HR options than any other provider. True, In the General Ledger, the debit column reflects the balance of the account. Authorize a power of attorney. Payroll registers can be created using spreadsheets, although this may not be ideal for most employers. Fair Labor Standards Act This information is also reflected in summary level entries in the businesss general ledger. Chapter 6: Analyzing and Journalizing Payroll, , , AP Lang - Television: The Plug-In Drug (T/V), Don Herrmann, J. David Spiceland, Wayne Thomas, Fundamentals of Financial Management, Concise Edition, Alvin A Arens, Mark A Beasley, Randal J Elder, National Association for the Advancement of Colored People. The payroll register lists all the employees who earned remuneration, the amount of remuneration, the deductions, and the net amount paid. Use the following information for Questions 19 - 20: total Administrating the state unemployment taxes. expense 522 $ 182,930. The certificates include Debits and Credits, Adjusting Entries, Financial Statements, Balance Sheet, Income Statement, Cash Flow Statement, Working Capital and Liquidity, Financial Ratios, Bank Reconciliation, and Payroll Accounting. Two complete payroll-related General Journal entries are recorded each pay period: one for the employees' payroll,one for the employer's share of the taxes. DEBIT CREDIT DEBIT CREDIT must it do to recognize the liabilities and expenses? depositor, what entry Should appear on November 15 for the remittance of the month's Social Employee FIT Payable-liability SUTA Taxes Payable-liability 27. 220 18 C) Alphabetically D) It is a report that becomes published with other financial reports. Fair Labor Standards Act (Federal Wage & Hour Law). B) FUTA Single click the box with the question mark to produce a On December 1, 20XX, Riley Sanders invested $250,000 to open Sanders Enterprises. The primary payroll journal entry is for the initial recordation of a payroll. \text{6. Garnishment $ 450. A. ADEA 6. & \text{ } & \text{ }\\ What are some examples of secondary sex characteristics? D) It must wait until the next financial period to record the payroll data. All nine have large-screen TVs? A) Employee earnings record Explore our full range of payroll and HR services, products, integrations and apps for businesses of all sizes and industries. Under the Affordable care Act, does the insurance provided by the employer only need to meet an affordability test? 53. expenses are, the higher the profitability will be. It's useful for record-keeping in a business and has legal implications if not kept correctly.. A summary of all payroll activity is an excellent way to look at the payroll register report. At a minimum, how often should an administrator furnish a statement of total benefits accrued and accrued benefits that are vested under ERISA? Vacaction Benefits Payable- liability. A) It allows managers to determine the effect of employee labor on departmental profits. Click here to learn more. A credit of $16,250 is recorded on the June 25 Deductions. Saleofequipmentforcash.TypeofActivityOCashInfloworOutflowCO. in its Federal withholding tax payable account. Protection under the provisions of the Age Discrimination in Employment Act begins at what age? Employees with less than a five year tenure of employment. Which of the following reports links the accounting and the human resources departments? 5 pay date: May 5 Payroll Taxes Expense $ 27,671. under the Civil Rights Act of 1964, the U.S. Government is classified as an exempt employer. True False. Copyright 2023 AccountingCoach, LLC. Payroll Accounting (Practice Quiz) Print PDF For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. The ________ is the master document that contains an employee's marital status, deductions, What is the Federal income tax payable 11,955. How can the information shown in the employees' earnings record be used? Which of the following steps should be taken by the Human Resources Department when hiring new employees? Harold Averkamp (CPA, MBA) has worked as a university accounting instructor, accountant, and consultant for more than 25 years. 6. It records payroll record on each employee separately. Collectionofnotesreceivable.8. Payroll registers show employers just how much money they need to set aside for payroll expenses, such as the following: In the event of an audit, these records of payroll expenses can help make the process as pain-free as possible. B) General Journal Purchaseofrentinadvance. True False. A payroll register lists all basic information related to employee take-home pay. What is The balance in the account? A. FICA Taxes payable-HI-liability Q08. A) $1,582. Which of the following is true of employee's earnings record? C) $12,576. Is it neccessary for an employer who is subject to FICA and FUTA taxes to keep a separate expense account for the taxes under each act? employees' payroll, one for the employer's share of the taxes. Payroll-Operating expense-liability Record the health insurance deduction. There may be an accrued wages entry that is recorded at the end of each accounting period, and which is intended to record the amount of wages owed to employees but not yet paid. Payroll liabilities are any type of payment related to payroll that a business owes but has not yet paid. \begin{matrix} expenses 30. Complete the steps outlined below: 1. 57. Which basic records are generated in most payroll accounting systems? Jeremy is single with two withholding allowances. 62. Saleofequipmentforanotereceivable. What does the Civil Rights Act of 1954 cover? the box with the question mark to produce a check mark for a correct answer and double click For what reason are "distribution" columns sometimes provided in the payroll register? C) It is the fourth repetition of the same entry. Saleofequipmentforcash. D. All employees earning the minimum wage. 20XX: Gross pay $ 27,894. D) Company website Medicare tax payable 3,197. When the firm remits its health insurance premium for this pay date, what is the General Journal True (California, New Jersey, New York & Rhode Island). A. ERISA applies to pension and welfare plans established by any employer engages in commerce. A) It is the fourth entry in the General Journal on that date. Learn how we can make a difference by joining forces to improve the success of the clients we share. These liabilities accompany every payroll you run. When the employer pays the employee in 2023 for the vacation earned in 2022, what account will the company debit? department. True, Employee earnings records form the link between accounting and the human resources & \text{ } & \text{ }\\ Required: 1. PAYROLL REGISTER Upload your study docs or become a Course Hero member to access this document Continue to access End of preview. Jan 19 Wages and salaries payable 226 8,134. Recorded as a liability for the employer in the payroll entry. 3. Which of the following is NOT part of the social security program? What portions of an employee's wages are exempt from a federal tax levy. B) A debit balance will increase the expenses of the firm's income statement. Hours worked. What is your sisters total cost under each of the two plans? Jan 31 J4 420 1, Switching payroll service providers made easy. 8. D) The balance sheet Small, midsized or large, your business has unique needs, from technology to support and everything in between. Issuanceofcommonstock. B) Social Security tax, $792; Medicare tax, $204. It is quite common to create a manual check, either because an employee was short-paid in the preceding payroll, or because the company is laying off or firing an employee, and so is obligated to pay that person before the next regularly scheduled payroll. Legalor equitable procedure by which a protion of the wages of any person must be withheld for payment of a debt. The information provided in the payroll register is used primarily to meet the requirements of the Fair Labor Standards Act. Didier and Sons had the following employer's share payroll tax general journal entry for the May B) By dollar amount A) Revenue A) Both documents contain year-to-date totals of taxes. DEBIT CREDIT DEBIT CREDIT That's why we've partnered with some of the top athletes in the world. Which of the following is not a provision of FLSA? 20. Jul 1 Wages and salaries payable 226 113,562. 2. Saleofequipmentforanotereceivable. A payroll register is tool that records wage payment information about each employee gross pay, deductions, tax withholding, net pay and other payroll-related information for each pay period and pay date. ERISA provides for full vesting of the employer's contributions in three years or gradually over six. B) Posting Federal withholding tax payable 220 $ 50,725. A) Debit Cash $27,237; Credit Health Insurance Payable $27,237. Federal withholding tax payable 220 399,472.